Catalyst Paper is selling its U.S. mills to ND Paper LLC, a wholly-owned subsidiary of Nine Dragons Paper (Holdings) Ltd.
The sale by Richmond, B.C.-based Catalyst Paper Corporation to the Hong Kong company was for U.S. $175 million.
Upon closure of the transaction, ND Paper will acquire Catalyst’s Rumford, Maine and Biron, Wisc. mills along with the associated staff at the company’s U.S. operations centre in Dayton, Ohio. Catalyst has agreed to provide transition support services to ND Paper to assist with the development of certain operational and administrative functions required for the two U.S. mills.
“We’re proud of what our employees have accomplished at our Biron and Rumford mills and our Dayton operations centre.” Ned Dwyer, Catalyst President and CEO, told Pulp and Paper Canada. “Their hard work and dedication have vastly improved these operations. This transaction allows Catalyst to repay a significant portion of our debt and focus on our British Columbia operations.”
Dwyer said Catalyst will continue to improve the competitiveness of the company and industry.
“We also continue to work with the provincial and federal governments in our defence against the unwarranted imposition of U.S. countervailing and anti-dumping duties.”
Pursuant to a lock-up agreement, the three major shareholders of the Company, aggregating approximately 87 per cent of the outstanding shares, have agreed to vote in favour of the transaction at the meeting.
Catalyst Paper manufactures diverse papers such as coated freesheet, coated one side (C1S), flexible and industrial packaging, coated and uncoated groundwood, newsprint, directory, as well as market pulp.
(Pulp and Paper Canada)
